INDUSTRY CAPABILITY REPORT

SRI LANKAN FLORICULTURE SECTOR

Prepared by:
Export Development Board (EDB), Sri Lanka
April,2017
CONTENTS
1. TYPES OF PLAYERS .............................................................................................................. 3
2. KEY PRODUCTS AND VARIETIES ...........................................................................................3
3. SEASONAL VARIATION IF ANY .............................................................................................3
4. SPECIALITIES AVAILABLE WITH PRODUCTS .......................................................................... 4
5. GEOGRAPHICAL DISTRIBUTION ACROSS THE COUNTRY AND KNOWN CLUSTERS IF ANY ...... 4
6. SIZE IN TERMS OF PRODUCTION (VALUE/QUANTITY) .......................................................... 5
7. KEY PLAYERS IN THE SECTOR IN YEAR 2011 .........................................................................5
8. NUMBER OF PEOPLE EMPLOYED IN THE SECTOR.................................................................6
9. GOVERNMENT POLICY AND SUPPORT AVAILABLE ...............................................................6
10. R&D AND PRODUCT DEVELOPMENT FACILITIES AVAILABLE.................................................7
11. INFRASTRUCTURE/LOGISTICS REQUIRED/AVAILABLE FOR THE SECTOR ...............................7
12. AVAILABILITY OF TECHNOLOGY AND SKILLED LABOUR .........................................................7
13. TOTAL EXPORTS OF FLORICULTURE SECTOR.........................................................................8
14. MAIN IMPORTING COUNTRIES.............................................................................................8
15. POTENTIAL FOR EXPANSION IN THE SECTOR ...................................................................... 10
16. STRENGTHS AND WEAKNESSES OF THE SECTOR ................................................................. 10

Sri Lankan Floriculture Sector 2

1. TYPES OF PLAYERS

Majority of floriculture exporters are producer exporters operating commercial farms. Apart
from the Sri Lankan companies there are foreign direct investors and joint collaborations
producing floriculture products for export. According to industry classifications in Sri Lanka,
floriculture industry falls under the Small & Medium category.

There are farmer cluster organizations and out grower systems producing decorative foliage
for exports under varied climatic conditions in the semi Urban and rural areas in the country.

2. KEY PRODUCTS AND VARIETIES

Key Products Varieties
01 Decorative Foliage Draceana sanderiana,Draceana massengeana, Cordyline,
Aglaonema, Adiantum, Calathea, Maranta, Codiaeum,
Monstera, Pothos, Pandanus, Thaloide, , Philodendron,
Miscanthus, Anthuriums, Diffenbachia, Scindapsus,
Caryota urens, Chrysalidocarpus, Differnbachia, ,Aspidistra
02 Rooted/ Un rooted young Plants & Draceana sanderina, Draceana massengeana, Codiaeum
indoor pot plants ,Agloanema,Scindapsus ,Draceana marginata , Cordyline,
Pleomele reflexa, Polyscias, Livistonia
03 Cut Flowers Roses , Carnations , Gerbera, Chrysanthemum,Lilies,
Gypsophila, Limonium, Anthurium,
04 Landscaping plants Plumeria, Gardenia, Codiaeum, Ixora, Hibiscus, Cassia,
Bouhinia, Bougainvella, Allamanda, Jasmine,Acalypha,
Neem,
05 Tissue cultured plants Ananas, Musa sp, Cordyline, Dracaena, Syngonium
Philodendron, Ficus
06 Aquarium plants Anubious, Cryptocoryne, Ceratophyllum, Echinodorus etc.

3. SEASONAL VARIATION IF ANY

Sri Lanka’s climate is predominantly tropical and endowed with different climatic conditions
caused by terrain enabling her to develop floriculture products ranging from tropical to
temperature throughout the year. Therefore the supply could be assured throughout the year.

Sri Lankan Floriculture Sector 3

4. SPECIALITIES AVAILABLE WITH PRODUCTS

Sri Lanka has maintained her reputation as a quality supplier of floriculture products to the
world market over the past 35 years.

The floriculture industry applies advanced cultivation technology. The products are grown
providing optimum micro climatic conditions under poly or shade houses. The whole supply
chain is operated by experienced nurserymen to guarantee quality products for export.

In order to facilitate safe movement of plants and plant products a well-equipped plant
quarantine facility is available and quarantine officials make regular visits to the floriculture
nurseries and closely supervise and advise on integrated pest management and disease
control.

Export companies have obtained environmental and quality certifications such as

GLOBALGAP, MPS and FAIR TRADE, GAP, GMP label to comply with requirements in the
international market.

The consistency of the product delivery is guaranteed.

5. GEOGRAPHICAL DISTRIBUTION ACROSS THE COUNTRY

a. Major Production Regions

Western province-Gampaha, Kaluthara and Colombo
Districts North Western Province- Kurunegala, Puttalam
Districts
Central Province – Kandy, Kegalle, Matale, N’ Eliya,
Bandarawela

b. Possible Areas for Expansion

Southern Province
Sabaragamuwa Province

Sri Lankan Floriculture Sector 4

 6. SIZE IN TERMS OF PRODUCTION (VALUE/QUANTITY)

Due to the highly scattered nature in this sector it is hard to find the size of production.

7. KEY PLAYERS IN THE SECTOR IN YEAR 2016

Omega Green (Pvt) Ltd
Mike Flora International (Pvt) Ltd
The Leaf Company Pvt Ltd
Star Flora (Pvt) Ltd
Tropiflora Ltd
Spado International (Pvt) Ltd
Asian Cuttings Lanka (Pvt) Ltd
Green Goddes (Pvt) Ltd
Ceylon Foliage (Pvt) Ltd
Hayleys Agro Biotech Pvt Ltd
River View Flora
Borneo Exotics Pvt Ltd
T R Exports International Pvt Ltd
Shekulanka Foliage Pvt Ltd
Ramya Horticulture (Pvt) Ltd
Green Farms (Pvt) Ltd
Décor Foliage
Lanka Flora Pvt Ltd
United Flora Pvt Ltd
Sunflower Lanka Pvt Ltd

The sector is capable of providing employment throughout the year at a rate of 5-7 workers per
acre. There are around 5000 direct employment and over 15,000 indirect employments have been
created as out growers supplying to the export companies.

9. GOVERNMENT POLICY AND SUPPORT AVAILABLE

The floriculture sector has been identified by the Government as a priority sector for
development and promotion for exports.
A floriculture park aiming to direct exports of floriculture products is being implemented by
the relevant government institutes in collaboration with private sector.
Floriculture has been included to the Mega Zones of Agriculture to be developed by the
Government.
Training for growers is provided by the Department of National Botanic Gardens
The National Plant Quarantine service under the Department of Agriculture provides the
extension services for pest & disease control.
The government encourages Foreign Direct Investments (FDI) in Floriculture Sector.
The Export Development Board provides the market intelligence and assistance for export
marketing.
Sri Lankan Floriculture Sector 6
 a. Legislations
Floriculture production & exports are regulated by the following Acts and legislations.

o Forest Ordinance
o Wild Life Protection Act
o Convention for International Trade of Endangered Spices
(CITES) Pesticides Control Act
o Regulations under the Pesticides Control Act
o Enactment of New Plant Variety Protection Act
o Seed Act
o Regulations under the Seed Act
o Plant Protection Act
o Regulations under the Plant Protection Act

b. Related Institutes

o Department of Agriculture
o Department of National Botanic Gardens
o Department of Forests
o Department of wildlife conservation
o Department of Commerce
o Sri Lanka Customs

Sri Lankan Floriculture Sector 7

10. R&D AND PRODUCT DEVELOPMENT FACILITIES AVAILABLE

o EDB by its Action Plan 2016-2020 is assisting the growers/ exporters to promote
new/innovative products to the international market.
o By achievement of the GSP+ concessions from the EU market, floriculture sector is
subjected to receive zero duty benefits for the export products.
o A World Bank project received to Sri Lankan government for agriculture sector
modernization includes export oriented floriculture sector as a potential area to
be assisted.
o National Botanical Gardens is engaged in developing new floriculture varieties and
EDB is assisting the grower/exporters to commercialize these products aiming the
international market.
o A National Committee for Floriculture Research & Developments consisted of
public & private industry stakeholders has been established to streamline the
resources and set up research priorities for the industry.
o An Annual Symposium is organized by the Council for Agriculture Research
Policy (CARP) providing an opportunity to present important floriculture
research done by the scientists attached to universities and research
institutions to the industry stakeholders.

11. INFRASTRUCTURE/LOGISTICS REQUIRED/AVAILABLE FOR THE

SECTOR
a. Available
International Airport
Highways for easy transportation
Availability of Coco peat as a growing media
Electricity at Industrial Tariff category

b. Required
Cultivable Land to expand cultivation.
Cold storage facilities at the Airport.
Direct flights to major floriculture market, the Netherlands.
Competitive Air Freight rates

12. AVAILABILITY OF TECHNOLOGY AND SKILLED LABOUR

Technology on production is mainly available with the private sector. The exporters are assisted
by the EDB to access state of art technology from overseas (if required) to improve production,
quality, packaging, storage and transportation. (Foreign experts to Sri Lanka / Floriculture
growers/exporters overseas to Technology Exposure Prorammes)

Availability of a skilled workforce is a key strength of the industry.

Floriculture is included in the curriculum of Universities to produce efficient and knowledgeable

man power for the industry.
Sri Lankan Floriculture Sector 8
 13. TOTAL EXPORTS OF FLORICULTURE SECTOR

Sri Lankan Exports for the year 2016– US$ 13.63 Mn

Annual Growth in value in Sri Lankan exports (2012-2016 )-5.21%
Sri Lankan Share in the World Market (2016)- 0.1%
World Ranking (2016) – 52

Major Export Markets - The Netherlands, Japan, Saudi Arabia, Germany,

UK, UAE, Quatar, Kuwait, Korea, USA, Australia,

Product & Value of Exports (US$ Mn)

HS No.
2010 2011 2012 2013 2014 2015 2016 Average
Growth
2010-
2016
Bulbs, tubers ... ... ... ... ... ... 0.01 -1.44
HS 0601
Live Plants 6.29 6.91 5.05 6.29 6.25 5.02 6.33 -31.35
HS 0602
Cut Flowers 0.74 0.69 0.3 0.2 0.22 0.15 0.12 4.33
HS 0603
Fresh Decorative 6.47 7.16 5.05 7.67 8.39 8.74 7.17 0.96
Leaves
HS 0604
Total 13.49 14.76 10.41 14.17 14.86 13.91 13.63 23.47
Source: Sri Lanka Customs Statistics

14. MAIN IMPORTING COUNTRIES

a. Live Plants
Country 2014 2015 2016
Value (US$) Value (US$) Value (US$)
Netherlands 2,532,313 2,090,076 3,434,671
Japan 1,263,419 1,048,365 968,796
Maldives 148,395 119,937 333,723
Australia 300,025 274,397 303,812
Germany 705,858 496,081 251,761
United States 149,846 155,847 212,373
United Arab Emirates 117,122 98,498 139,609
Korea South (Korea, 117,214 96,572 129,578
Republic of)
Denmark 181,160 119,644 120,064
United Kingdom 81,310 68,094 87,050
Sri Lankan Floriculture Sector 10
b. Cut Flowers

Country 2014 2015 2016

Value (US$) Value (US$) Value (US$)
Netherlands 83,326 81,820 70,683
Qatar 24,358 17,047 15,173
Hong Kong 144 13,175
Saudi Arabia 31,814 28,729 13,058
China 2,504
Maldives 5,704 1,654 2,317
United Arab Emirates 20,868 5,797 2,100
Korea South (Korea, 1,040
Republic of)
Japan 21,293 4,187 1,020
Bahrain 2,521 1,238 245
Netherlands 83,326 81,820 70,683

c. Decorative Foliage
Country 2014 2015 2016
Value (US$) Value (US$) Value (US$)
Netherlands 1,645,427 1,778,256 2,003,041
Japan 1,539,026 2,169,830 1,423,036
Saudi Arabia 1,200,419 1,300,563 1,207,236
United Kingdom 1,467,180 909,207 685,406
United Arab Emirates 725,341 718,622 543,496
Qatar 475,410 493,633 405,099
Kuwait 421,184 414,106 352,569
Bahrain 74,292 97,401 85,715
Germany 238,677 91,551 63,598
Italy 86,359 64,231 46,383
Netherlands 1,645,427 1,778,256 2,003,041

d. Bulbs, tubers

Country 2014 2015 2016

Value (US$) Value (US$) Value (US$)
Maldives 356 8,043
Korea South (Korea, 5,453
Republic of)
Germany 578
Netherlands 1,276 229 56
Sri Lankan Floriculture Sector 11
 United Kingdom 12
Japan 91
Switzerland 36 57
15. POTENTIAL FOR EXPANSION IN THE SECTOR

Potential available to develop supplies of existing varieties in demand and expand the product
assortment with the introduction of new varieties

16. STRENGTHS AND WEAKNESSES OF THE SECTOR

a. Strengths
o Climatic variations and diverse topography which enables to cultivate a
range of products from tropical to temperate.
o Geographical location of the country facilitates to supply products within 24 hrs
to any destination in the world.
o Knowledge & technology to finish products according to international
standards. Availability of skilled & trainable labour force.
o Availability of coco peat as a growing media.
Reputation built up as a supplier of quality
products. Institutional support.
o Application o f G o o d A g r i c u l t u r a l P r a c t i c e s t o p r o t e c t t h e
e n v i r o n m e n t , s a f e g u a r d workers and sustainable use of natural resources.

b. Weaknesses
o Limited product assortment
o Lack of R&D to develop new
products. Relatively small
production units.

Sri Lankan Floriculture Sector 12

Prepared by:
Ms.. Gayani Wijayathilake - Assistant Director, EDB, Sri Lanka

Disclaimer:
The Sri Lanka Export Development Board, (EDB), has taken every care in the preparation of the content of
this report, but the EDB cannot be held responsible for any errors, defects, lost profits, or other
consequential damages arising from the use of any information obtained either directly or indirectly from
this report. The EDB accepts no liability whatsoever.

Sri Lankan Floriculture Sector 13